Bitcoin might support the Japanese economic growth

By: DailyForex

According to analysts, with the raise in the Bitcoin, the Japanese GDP will increase by 0.3%, as the Bitcoin is being traded disproportionately with the Yen, and there are around I million Japanese person holding around 3.7 million Bitcoin. The “Fortune Effect” will enforce the consumer spending, which stimulates the Japanese economy. Which might provide more evidences that the digital currency world, led by Bitcoin, exists and have a larger influence on the real world economy, and that the raise of Bitcoin value can add 0.3% to the Japanese GDP, according to analysts Nomora Yoshyuki Suymon and Kazoki Miamoto.

In their latest memo to their clients, they said that the “Fortune Effect” on the Japanese Bitcoin holders, will probably stimulate consumer spending which will have a measurable effect on the GDP. This is an interesting memo, as the analysts and economists largely assumed that the Bitcoin have a very small market value, and unlinked to the other financial institutions, so it will not affect the real economy. The market capitalization of all digital currencies on 31 December 2017 was at $560 billion. Qeenmar Kitkab said, there are only 3 out of the largest 500 retailer outlets online, that accepts Bitcoin as payment.

Recently, traditional financial institutions have recently entered their currencies to the digital currencies world. The Chicago Features Exchange, the CME group, Goldman Saks. Bitcoin is very popular in Japan, with 40% of all deals are done in Yen, more than the USD deals. Around 2 million Japanese person holds around 3.7 million Bitcoins, as per Nomora estimates. Soymon and Miamoto estimates that the fortune effects of these holdings can reach to a $96 bullion (851 billion Yen) of additional consumption.

The Nomora bank said that the Yen traded Bitcoin market cap increased to around 5.1 trillion Yen (4.52 billion USD) by Christmas. This should provide the Bitcoin owners in Japan an increase in assets value by 3.2 trillion Yen (3 billion USD) over the year.  

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